Keynesian general theory of macroeconomics states that in the short run, economic output is strongly influenced by aggregate demand. Keynes also said that the total economy expenditure is not a reflection of its productivity. Keynes states that in order for aggregate supply to meet aggregate demand, the goods supplied should be those that are in demand.
Discussion Question-1 Economics is indeed a broad field which has its recognition in almost every aspect of life. There are basically two different types of economics which predominantly are microeconomics and macroeconomics in total (WIERENGA). Microeconomics is the field of economics that denotes with the economics of the individuals whiles the economics of the country as a whole found as macroeconomics in total.
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Tax advantages on buying your own home in Canada Name: Course: Instructor: Institution: Date of Submission: Introduction The research paper puts into perspective the issue of tax advantage of owning a home in Canada. The paper also illuminates Professor Tristani’s view that owning a home may not be advantageous after all.
Nash equilibrium has several application in the real world, especially in the economic world. Therefore, the paper would relate the applications of the game theory in real world economic scenarios. When relating the ideas, there will be limitations and advantage of relying on the answer for decision making.
According to the paper, the UK will not prosper without seeing the prosperity of London and similarly London will not prosper without progress of the rest of the country. The study has established that even though London’s economic growth performs incredibly well, the city also relies on the other parts of the country in generation of revenue.
The percentage of the labor force that was unemployed for five weeks or less did not grow much during 2007. Ironically in the aftermath of the recession which occurred between 2009 and 2010 after five weeks of unemployment people looking for jobs ended up filing for more unemployment benefits.
In the past decade the percentage of air travel has enhanced by almost 7% per annum. All over the world travelling in business and leisure purposes have increased manifold. In the last year the scheduled airlines carried approximately 1.5 billion passengers.
The corporation has since then expanded to deal in a wider variety of beverage and food brands, which has seen a merger in 2001 with Quaker Oats in conjunction with the acquisition of Tropicana of 1998. The corporation is centered in Purchase, New York and has major interests in the manufacturer.
The six conditions in which markets fail to lead to efficient outcomes are those in which competition fails, situation in which public goods are involved, market situations in which there are externalities, situations in which markets are incomplete, situations in which information is imperfect, and situations in which there are macroeconomic disturbances
Before discussing whether mercantilism is applicable in the modern world, it is important to understand the assumptions of the theory. Accumulation of wealth is the core idea of Mercantilism. The theory states that a nation’s prosperity is depended on its capability to produce and export more goods than what they import.
Workers make monthly contributions to this system and receive their benefits at due time. Individual saving accounts are not maintained by this system but a group of individuals who are supposed to retire at a particular a time are put together. However, there is been a debate on whether this social fund should be privatized or not.
During this period, the investors get a fixed percentage of interest on their investment. The period and the percentage of interest changes according to the nature and kind of bond. Bonds provide fixed income to the investors and it is a safer investment choice, therefore, bonds are called fixed income bearing securities.
Official cash rate is the rate of interest which is used by the central banks of Australia and New Zealand for the purpose of adjusting the national interest rates. Official cash rates are interest rates which are paid by the RBA in the overnight money market to adjust the overall national economy’s interest rates.
In mean time, speculators find their way in the market believing of making profits through short-term buying and selling. This drives to an increase in demand but at some point, demand decreases or stagnates with a subsequent increase in supply resulting to a sharp drop in prices (Baker, 2008).
US Automobile Industry Analysis
This report analyzes the automobile industry in general, and considers a specific case of Honda Motor Company. The automobile industry, according to a 2007 census, consists of 174 companies, which employ 64,436 people (US Census Bureau, 1).
The major reason for introducing a healthcare reform was to reduce the economic burden on citizens. This paper tries to examine the US heath care reform bill, its economic effects, conditions that led to the introduction of the bill and some controversies linked to it.
Presently in the US, there is slow growth and escalating unemployment; the main sources of apprehension. However, the FED will maintain the funding rate pending 2014, which is a giant push. It forecasted that the economy will develop more than 2% the following year, which is good news.
Apart from the increase in the capital stock, host countries benefit from management skills. These effects have a direct impact on the economic growth of the countries (Dunning and Lundan, 2008). Foreign firms also increase employment in these countries. However, the inflow of FDI has negative impacts such as reducing the sovereignty of a host country.
The first form is the debt that the citizens owe to the government. This category also comprises of foreign investors, foreign governments and businesses who bought notes, bonds and treasury bills in the United States. Understanding the debt has much significance to the Federal government as well as the residents of the United States.
The exchange rate in this regard plays a major role which strongly affects the decisions made by exporters, importers, foreign investors, businesses and financial institutions including banks. Studies have revealed that exchange rate imposes a considerable impact on the international investments, competiveness of exports as well as imports, currency value of debt payments and value for international reserves.
ASSESS THE CURRENT MOVE TOWARDS COMPETITION AND CHOICE IN HEALTH CARE IN TERMS OF THE EFFICIENCY VS. EQUITY TRADEOFFIntroduction Choice and competition are among the fundamental models of health service delivery that of recently, are being adopted by most countries for their important role of meeting the demand existing in the modern healthcare system.
The paper discusses the key issues discussed in the article and also explains how it relates to the syllabus that is given. The chosen article is about demand supply and market equilibrium. It also discusses the elasticity of demand of a product. To start with, the article describes utility as the amount of satisfaction that a consumer derives from consumption of a good.
Bahrain and Saudi Arabia are both situated in the Middle East. Bahrain is much smaller than Saudi Arabia in terms of area, population and GDP size. Consequently, Bahrain’s economy and Saudi Arabia’s economy differ in their overall structure and composition. The aim of the analysis is to identify similarities and differences between two economies.
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Russia is a country which was once a super power along with USA which is now considered as a developing nation due to their economic and living standards. If we define developing nation, it can be described as one which provides a healthy living environment for its citizen along with much advanced economic status.
The essay will discuss the impacts created by this financial crisis on different economies in the world. This part of the essay will concentrate on the growth of real Gross Domestic Product, inflation rate and unemployment rate in Australia, United States and United Kingdom.
US Rising Debt Level and Current Economic Problems
In the United States, the soaring budget deficit has resulted in an increase in the overall government debt. Budget deficit is expressed as a percentage of GDP. There are various reasons for having a budget deficit.
There are a number of conditions that should be available for the occurrence of intraindustry trade. The most important condition is that there should be some level of comparative advantage for intraindustry to occur. Research studies indicate that intra-industry occurs mainly because there is product differentiation and that a particular economy is in a position to produce goods of high quality compared to others (Helpman & Krugman, 2005, p.
The focus will be on the Ukraine, its current economic status, how it is faring as an outsider to the union right now and what the repercussions, for good or bad, might be should it also join the Customs Union (CU). A brief overview is given first in the introduction to set the current environment for the countries of the Customs Union, the Ukraine and its present economic situation.
A.1) Globalisation is a key word in all the business operations in today’s world. Companies which operate in restricted geographical area want to cash on this new trend in business. The ultimate aim of all the business is to expand and establish themselves as a global company.
MBS are loans that are normally purchased from mortgage companies, banks and originators and then they are assembled into groups by a private entity, a governmental or a quasi governmental. The securities are then offered by the entity. These securities are offered in a process called securitization
The Solow model is also known as Solow-Swan growth model or the neoclassical growth model and the exogenous growth model. The model delineates economic models pertaining to long term growth within the framework of neoclassical economics.
Prior to 1976 the economic system prevailed in China was communist economy. According to this system, the means of production was completely controlled by the government. After 1976, the scenario changed and China adopted the characteristics of a social market economy.
Merger between the United and Continental was approved by the European Union last July 2010 (Breaking Travel News, 2010). With 702 aircrafts, the United is now classified as the largest airline company in the world (CopyLine News Magazine, 2012). Operating 5,800 flights each day, the United Air Lines and Continental can reach 371 airports throughout the Americas, Europe and Asia from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, Tokyo and Washington, D.C.
The loose regulations that arisen contributed to the emergence of a super-rich class known as the “robber barons” who owned extremely large companies. The “robber robins” were known for their ways of lavish lifestyles and exuberant spending. Thorstein criticized the type of behaviour and called it as being a waste.
The case for a closed economy is considered here. In a closed economy net exports are always zero. According to the circular flow diagram, Y=C+I+G, where consumption= C, Investment=I and Government purchases= G. The equation can be rearranged as Y-C-G=I The left hand side denotes the savings made by the consumers while right hand side shows the investment.
As such, this has allowed some developing economies such as China as well as India to pose strong competition to the already developed and giant economies in the world, especially the U. S. The flattening of the global ability to compete economically has been boosted further by the convergence of various political forces as well as technological expertise, which has consequently resulted in the emergence of a worldwide web-enabled field of play.
Mostly foreign aid is considered as being in excessive amount, or just a waste on the corrupt governments of the world. In actuality, the quality and quantity of assistance have been meager and donor nations have never been held accountable for it. What is the effect of foreign aid on the economic growth of Third World countries?
This is facilitated by the private sector and banks by means of electronic money. The liquidity and funding in the money market increases by a growth in the money supply due to a rise in capital in banks and other financial institutions (Wieland, 2009). Quantitative easing is divided into expansionary and contractionary policies as well.
On the international front, the nationalization serves to sever the historic amiable relations between Argentina and other countries, particularly Spain. Spain’s unwillingness and incapacity to invest further in Argentina also exemplifies the social implications of the nationalization.
Absolute advantage: Absolute advantage refers to the advantage of producing more good per unit of production as compared to the production of others. Application The article talks about international business while maintaining proper markets. The comparative advantage of the United States as compared to China, Germany and France remains debatable.
This paper mainly focuses on establishing economic relationships between constantly dropping prices of computers and the considerable growth in demand for this hardware. The modern computer has advanced features like increased RAM, improved portability and software compatibility. Despite this fact, the average prices for computers are falling.
By and large, consumption goes beyond the mere act of buying and the subsequent consumption. As Mcnall (1990) notes, the latent function of consumption engender some form of signaling effect of uniqueness and exclusivity: "consumers actively involve themselves in purchases not only to consume but also as a way of 'telling' others who they are, or who they wish to become" (49), thus the status consumption.
This essay mainly focuses on the main challenges, which the Nordic Welfare model is currently facing. Nordic countries were always accused of charging a high individual tax rates as well as high corporate taxes. The demographic shift in Nordic countries also presents an important challenge for the viability of their economic systems.
The report presents the policy actions taken by the government of China after noting that the country is depicting lesser growth rate than the last quarter of 2012. 2.0 Introduction China has followed the export led path of growth which has brought admiration for the economy from the international sphere (Razmi 2009, 1).
This essay mainly focuses on identifying effective sets of macroeconomic policies for achieving major macroeconomic objectives, set by the government. The macroeconomic objectives include labor productivity and high levels of capital investment. The rise of the European market and globalization impacted the long term objectives of the government.
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Unregulated open fisheries in the Pacific Ocean created a common resource for the fishermen. Both local fishermen and foreign fishermen exploited these resources with the aim of maximizing private profits. This decreased the total reserve of fish in these areas and at one point of time the cod population became extinct (“Fish Stock Depletion”).
Macro & Micro economics Introduction The Chinese economy has been growing at a significantly high rate since the last three decades. It is the second-largest economy in the world and is one among the fastest growing economies (Chiang and Standing, 2013). Last year (2012), in the fourth quarter, the Chinese economy grew at the rate of 7.9% (BBC, 2013).
Financial markets are the most unstable economic markets that any investor can foresee. With economic recessions and high-interest rates, the stock market of the US faced what seemed to be the most trying moments in the history of US financial markets. The Federal government had declared intentions of raising the interest rates.
The Australian retail grocery market is characterised by low growth in terms of population, comparatively small market, along with large distances. These unique features of the industry have created the requirement of ensuring economies of scale for the retailers which operate in the national level in order to deliver food as well as other grocery products to the customers throughout the market in a reliable manner.
For this matter, understanding the Social Security Trust fund and the means by which it operates, manages debt, and has evolved over the past years to represent what we see today is extremely important facet of understanding the future of governmental finance, taxation and prospects for retirement both for the current generation of retirees as well as our own generation.